PowerPoint Presentation

Mobile: What We Know for Fact TodayEmpirical Data from Coca Cola, AT&T, MasterCard and Walmart

September, 2015Greg Stuart, CEO MMASao Paulo, Brazil

MMA Brazil Forum

MMA is 800+ Members Strong GloballyMarketers, Agencies, Media Sellers, Technology & Operators Globally

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Brazil has had 3 of the best Football teams of all time 58, 70 & 02 And probably the best country team of all time!What we know as fact is

Mobile advertising is highly effective. We now have proof. And Brands are missing that opportunity.What we know now as fact is

But what do you expect from a channel that has this kind of influence?

Aspiration without AllocationIs MeaninglessB. Bonin BoughMondelez International

So this brings us to a very interesting point.Mobile is growing, everyone is convinced but there is 6

SMoX.me = Smart Mobile Cross Marketing Effectiveness StudiesThats why we built.

Fundamentally, SMoX is about knowing the value of mobile to your Business?Can mobile help me meet my marketing goals?What is the optimal mobile allocation for my campaign?How can I make my mobile investment work harder?

$2 million,20 companies, 3 Trade Groups, 7 major marketers

Global Viewpoints:6 studies so far10 more coming

Real in-market testingMeasures whole mixMeasure mobile even if its 0.1%!

SMOX is revolutionary global research initiative

145Leveraging Mobile ad tech to target DIDIndividual Level data for cross media exposureExperimental Design for media allocationTrack multiple KPIs, perceptual or behavioral Regression analysis to identify driversBudget Optimization Software to operationalize insights

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Integrated Partners target DID of panelists

500KMobilepanel ofInsightExpress checks for cross over in panel and sends list of panelists back to NetworksAds, tagged by InsightExpress, are targeted to panelist devices

Assess multiple scenarios of cross media exposure and frequency

Brand KPIs /attitudinal with SurveysFoot trafficwith actual location dataActual sales with panel match

How it works: Thanks to Marketing Evolution & Millward/Browns Insight Express

What is the value of mobile to your Business?Can mobile help me meet my marketing goals?What is the optimal mobile allocation for my campaign?How can I make my mobile investment work harder?

AwarenessImagePurchase IntentFoot TrafficSales

The campaigns we researched in North America cover the entire purchase funnel

How many people can you convert with mobile?

?

Campaign AverageMobile

AT&T wanted to build AWARENESSfor the new moto X

ImagePurchaseIntentFootTrafficSales

Awareness

TV

PRINT

MOBILE

DIGITAL

2. MasterCard wanted to increaseassociation with Travel

PurchaseIntentFootTrafficSales

Awareness

TV

SOCIAL

PRINT

DIGITAL/MEDIA

Image

3. Walmart wanted to drive Intent forBack to School grocery

FootTrafficSales

Awareness

TV

MOBILEImagePurchaseIntent

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DIGITAL

Mobile Delivered almost twice the Awareness /Dollar vs.. other media

Total People converted with mobile vs. campaign on averageDevice AwarenessAT&T Campaign * on averageMobile

1

1.9

x 1.9

ImagePurchaseIntentFootTrafficSales

Awareness

* Media in mix included TV, Internet, Print

Mobile Delivered almost twice theImage /Dollar vs.. other media

Good Card To Carry When TravelingMasterCard Campaign * on average

1

1.7

x 1.7Total People converted with mobile vs. campaign on average

PurchaseIntentFootTrafficSales

AwarenessImage

Mobile* Media in mix included TV, Internet, Print, Social

Mobile Delivered almost twice the Purchase Intent /Dollar vs...other media

WalmartCampaign on average

x 1.9

1.9

1

Intent to Shop Back to School Grocery Total People converted with mobile vs. campaign on average

FootTrafficSales

AwarenessImagePurchaseIntent

Mobile* Media in mix included TV, Internet

4. Coca Cola launched a campaign to support its growth strategy for Gold Peak

FootTraffic

AwarenessImage

PurchaseIntent

TV

PRINT

DIGITAL/MEDIA

OOH

Sales

Mobile worked harder than its share and drove results across the BoardSales

of sales

6%Total People converted with mobile vs. campaign on averageGold Peak Campaignon averageMobileTop of MindAwarenessHomeBrewed Taste Gold Peak Campaignon averageMobile

4.8

1

1.8

1

FootTraffic

AwarenessImage

PurchaseIntent

Salesof budget

5%

But does Mobile work in China too?

?

Campaign AverageMobile

TV

OOH

DIGITAL VIDEO/DISPLAY

MOBILE VIDEO/DISPLAYMEASUREMENTPARAMETERS16-50TARGET:AgeDATACOLLECTION20151/272/28

*OOH includes Cinema. Mobile includes Video and Display no Social

FootTraffic

AwarenessImage

PurchaseIntent

Sales

Coke ran during Chinese New Year

Advertising ROI indexed to Total Campaign ROIOverall index = 100Mobile offered nearly double the ROI over TV & was twice as efficient in driving sales vs. the campaign

Sales

of sales

8%of budget

4%

Estimated ROI Index by MediumJanuary-February

But does Mobile work in Brazil too?

?

Campaign AverageMobile

To answer the questioncan mobile help me meet my marketing goals?

YES.Mobile drives results across the entire purchase funnel

Mostly at nearly 2-to-1 vs. average

But what is the REAL business value of mobile?

Mobile in the mix improves overall campaign performance!

Proprietary & Confidential

Agreement with brand imageIntent to shopOffline SalesAwareness0.9M1.6M~3.7M2.6M

What is value of mobile to Brands Business?Can mobile help me meet my marketing goals?What is the optimal mobile allocation for my campaign?How can I make my mobile investment work harder?

Same budget but better results allocate to mobile at its optimized level

Proprietary & Confidential

10-15%

So what is the optimal allocation for mobile in the mix?

DOUBLE DIGITAim for a minimum Mobile allocation in your total marketing mix (10-15%)

Key QuestionsCan mobile help me meet my marketing goals?What is the optimal mobile allocation for my campaign?How can I make my mobile investment work harder?

SMoX also highlights mobile best practices

Format

Location

Time of Day

Creative

Optimize by Format

Format

Location

Time of Day

Creative

Larger Banner improved results for AT&T

Banner Ad Size A - BoxBanner Ad Size B - BoxPriceEffectiveness150100100

250Better ROI!

Mobile audio improved results for Gold PeakMobile AudioMobile DisplayPriceEffectiveness250100100

350Better ROI!

Impact in this case is defined as purchase intent for Gold Peak tea.

Mobile VideoTV40100100450Better ROI!

Effectiveness atlow frequencyPrice

Save video creative would produce stronger results vs.. TV with lower cost

With the same creative, Mobile Video had more impact than video on other platforms Proprietary & ConfidentialSource: Walmart SC Survey; Data Collected from: 8/4-9/28

MOBILE VIDEO

CABLE TV

The first couple of exposures were significantly more impactful in mobile, showing that mobile can be a much more engaging platform.38

PriceBetter ROI!Effectiveness at low FrequencyMobile NativeMobile Display5001001001000Effectiveness at High Frequency300

Mobile Native improved results for Walmart.

40Re-allocation toward video and audio would be needed to drive additional revenue.

Proprietary & Confidential

MOBILE AUDIO

MOBILE VIDEO ADS

MOBILE DISPLAY

2014 ActualMobile Allocation2014 Optimized Mobile Allocation5% of total budget10% of total budgetOptimal Budget Allocation to Drive Revenue:Mobile Media Deep Dive2X2.5X45%19%36%33%21%46%

Re allocation to mobile means that investment would increase for all mobile formatsAudio would double in absolute termsVideo would increase 2.5x40

Leverage Location Targeting

Format

Location

Time of Day

Creative

Location and format Interact: Combine for better results

Expandable UnitsPencil UnitsRetargetedProximity

40%

12%

No Lift

10%

SMoX Some of what we know nowProprietary & Confidential43We can now prove that Mobile works across the entire purchase funnel, awareness to store traffic to salesOptimized level of Mobile Spend ranges 8-16%With best practices range is 12-20%Increased smartphone penetration would push upwards 25%Will increase Campaign performance +4% (i.e. sales) up to plus +15% with Intent to shop.With best practices; sales up +7% and intent to shop +29%Mobile Video is underpriced by 50% (at low freq)Mobile Audio is underpriced by 30%Mobile Native is underpriced by 50% (at low freq)Proximity targeting is underpriced by 60%Video and Native are high-impact and build impact quickly. Same Video in mobile is 4.5x more effective than TV (at low freq)Display and Audio keep building impact at higher frequencyLarger ads are +2.5x effective but priced at 1.5x.

How can I make my mobile investment work harder? Optimization area1. Optimize by Format2. Leverage Location targeting3. Leverage Context targeting4. Build on CreativeTotal

ROI Upside20%-40%20%+20%+40%-60%+100% to +160%

Apply learnings: Increase in impact would then push the optimized level of mobile spend up

Proprietary & ConfidentialMobile optimized in mix moves to 15% to 20%

10-15%15-20%

And with BEST PRACTICES for Mobile,it can be really powerful driverCampaign performance increases +50% to +90%2.6M0.9M1.6M~3.7M3.9M2.2M3.1M~6.5M

Mobile at 15%Assumes no constraints in the optimization process

Optimizing media in China to increase sales is goal 15% into mobile channelsOOH

TV

DIGITAL

MOBILE

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Increase in Profit

16%Mobile at 15%No constraints in the optimization process

Reallocation to mobile could generate double digit increase in PROFIT generated from campaign

Same budget better results: reallocating to mobile would increase the impact of the campaign and convert more people on the key image statement49

Key QuestionsCan mobile help me meet my marketing goals?What is the optimal mobile allocation for my campaign?How can I make my mobile investment work harder?

Mobile drives results across the ENTIRE purchase funnel

Aim for a double digit mobile allocation in your total marketing mix (15-20% plus)

Optimizing your mobile investment can increase its impact by up to 160%, maybe more

Part 2: Where do we go from here?

Mobiles Future

Opportunity knocks

Jack Welch Once SaidThere are only two sources of competitive advantage: the ability to learn more about our customers faster than the competition and;the ability to turn that learning into action faster than the competition.

So, Whats The Future Look Like?54

But will SMoX move the market!

Priority #1 is to make these guys as happy as possible. They will pay you back.55

What can SMoX mean to Brazil?Proprietary & Confidential56Three elements drive mobile performanceAd effectiveness, Cost, & Smartphone penetrationU.S. & China around 50%; Brazil at 35% but growing fastOpportunities for Brazil Marketers:Have MMA come share the resultsDo your own study(s) or support themReallocate now - Success is in 1st mover advantageProjected to increase Market Capitalization +5%

SMoX Roadshow OverviewProgram'15 Mtgs/Focus Est. Reach '15 Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 20161Consortium Meetings2 100 Sales Training Meetings10 800 Wave 1Wave 21Projected Study Available for Release DatesUSAAT&TBrandCoca-ColaSales/BrandWalmart B2SBrand Walmart B2SSalesCEO SummitWalmart SCBrand & LocationMasterCardBrandConfirmedUnileverSales/BrandDecemberColgateSales/BrandEstimatedOther (Auto or QSR)TBDOther (Auto or QSR)TBDGLOBALChina / Coca-ColaBrandBrazil/Coca-ColaBrandUK-CokeBrandAkbankBrandTurkey Coca-ColaBrandOtherCalculatorTool3SMoX Road Shows (NY, SF, Chi, Dal, etc.)4 750 International RoadShows (Potentially) 300 4MMA Global Events2 1,200 CEO/CMOSM2CEO/CMOSM2MMA Regional Forums4 2,000 NYEMEA, APACLATAMNYEMEA, APACLATAMMMA Country Forums8 4,000 BrazilShanghaiDubai, BrazilShanghaiDubai, Other Events outside MMA20 3,000 Wave 1Wave 25Media Agency Tour20 300 Wave 1Wave 2Marketer Meetings65 1,000 Wave 1 Wave 2 - TOP 30 (from 50FM)Webinars3 500 13,950

Assumptions:Total spend of marketers reached $38BN (50FM and roadshow)Average current spend 4%Future Spend assumptions based on survey data:High bracket/ leader group: Mobile at 8% (10% of companies)Mid bracket/majority group: Mobile at 6% (50% of companies)Low bracket/laggard group: Mobile at 4.5% (40% of companies)INDUSTRY CHANGE OF$600M

3 things you can do now

Whats next? 3 things to do NOW59

Get more friendly with these companies

$3.4 Billion in total Advertising Spend1

Priority #1 is to make these guys as happy as possible. They will pay you back.60

Other Pockets of Opportunity 1 of 2

$463 million$7.5 Billion in total Mobile Spend & $49 Billion in total Advertising Spend

$1,629 million

$1,708 million2

Other Pockets of Opportunity 2 of 2

$2,080 million

$7.5 Billion in total Mobile Spend & $49 Billion in total Advertising Spend $1,622 million2

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Share the Story63Share this story. Talk about it all the time.

Want to engage your client? We could still do studies with the following:AutomotiveInsuranceTravelConsumer Electronics3

Summary: How to take advantage of SMoX64Relay the findings (support sales teams)Know where the money will beBring your own Marketer into SMoXGet unique programs/approaches testedUtilize the insights for publishersHave us present SMoX to senior marketers

greg@mmaglobal.comThank You